Baldrige-Driven Performance Excellence Helps Grow Revenue and Jobs
From NIST Tech Beat: February 20, 2013
Michael E. Newman
Take a tip from the six two-time winners of the Malcolm Baldrige National Quality Award: If your organization wants to achieve growth in both revenue and jobs, the Baldrige Criteria for Performance Excellence are the best way to go.
From 1988, when the Baldrige Award was first presented, to 2011, there were five organizations that received the honor twice: Solectron Corp., 1991 and 1997 for manufacturing; The Ritz-Carlton Hotel Co., 1992 and 1997 for service; Texas Nameplate Co., Inc., 1998 and 2004 for small business; Cargill Kitchen Solutions (formerly Sunny Fresh Foods), 1999 for small business and 2005 for manufacturing; and MEDRAD, 2003 and 2010 for manufacturing. The Baldrige Performance Excellence Program (BPEP), manager of the Baldrige Award at the National Institute of Standards and Technology (NIST) in cooperation with the private sector, decided to compare revenue and jobs data for these organizations for both years in which they won. The median growth in revenue for the two-time winners was 93 percent and the median growth in jobs was 63 percent. The job growth was significantly higher than the average growth in jobs of 3.2 percent for matched industries and time periods (as reported by the Bureau of Economic Analysis and the Bureau of Labor Statistics). Comparative statistics for revenue were not available.
When MESA Products, Inc., received its second Baldrige Award for small business in November 2012 (the first was in 2006), the company’s revenue and jobs growth numbers were added to the mix. The median growth in revenue for all six two-time Baldrige Award winners is now 92.5 percent and the median growth in jobs is now 65.5 percent. In contrast, the comparative average growth in jobs for matched industries and time periods has dropped to 2.5 percent. MESA’s contribution to the positive growth figures is impressive, considering that the six-year period between the company’s two Baldrige Awards (2006-2012) was one marked by tough economic times in the United States.
The BPEP raises awareness about the importance of performance excellence in driving the U.S. and global economy; provides organizational assessment tools and criteria; educates leaders in businesses, schools, health care organizations, and government and nonprofit organizations about the practices of national role models; and recognizes them with the Baldrige Award in six categories: manufacturing, service, small business, health care, education and nonprofit.
Thousands of organizations worldwide use the Baldrige Criteria to guide their operations, improve performance and get sustainable results. This proven improvement and innovation framework offers organizations an integrated approach to key management areas. The criteria are regularly updated to reflect the leading edge of validated management practice.
The Baldrige Award is not given for specific products or services. Since 1988, 93 organizations have received the award.
For more about the BPEP, the Baldrige Criteria and the Baldrige Award, go to www.nist.gov/baldrige.